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Japan Exchange Group cleared to adopt fintech

TSE already has plans to test blockchain-based trading

TOKYO -- Japan Exchange Group will be allowed to use such financial technology as blockchain that could make trading more efficient.

The Financial Services Agency had previously limited JPX subsidiaries to activities directly linked to exchange operation, such as system development. The new, broader interpretation of their duties allows the group to introduce technology that contributes to the smooth running of trading platforms. The FSA will approve fintech adoption on a case-by-case basis.

Besides blockchain -- the basis for virtual currencies like bitcoin -- possible areas of fintech exploration also include artificial intelligence. JPX companies will be able to invest in startups working with these technologies. The Tokyo Stock Exchange and others are planning blockchain proof-of-concept tests for as early as spring.

Japan is trying to avoid coming late to the fintech revolution. With Japanese help, Myanmar's Yangon Stock Exchange is wrapping up tests of blockchain-based trading and looking to put a practical system in place. Nasdaq is also testing out blockchain-based trading.


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